BUSINESS TRAVEL DISRUPTED: New business models and digital attackers discover the world of business travel.

Transcription

1 BUSINESS TRAVEL DISRUPTED: New business models and digital attackers discover the world of business travel. Dr. Engelbert Wimmer (CEO, e&co. AG) and Ludger Bals (Associate Partner, TTCG) ABSTRACT

2 ORGANISATION AND FORMAT Category: CSR, Business Travel, MICE Date: 8 March 2018 Time: 16:00-16:45 o clock Location: Congress Hall 7.1a, Room New York 2 Keynote speech: Ludger Bals, Associate Partner, The TravelConsulting Group (TTCG) Dr. Engelbert Wimmer, Founder & CEO, e&co. AG Moderation: Ludger Bals, Associate Partner, The TravelConsulting Company (TTCG) Podium Guests: Christopher Bergau, Head of Strategic Partnerships DACH, Airbnb Dr. Engelbert Wimmer, Founder & CEO, e&co. AG

3 Some impressions from the ITB live stream. 3/28/2018 ITB BERLIN BUSINESS TRAVEL FORUM BUSINESS TRAVEL DISRUPTED KEYNOTE 3

4 INTRODUCTION

5 Take-off: Perspectives on Chances in Business Travel / 6 Drivers for Success. DEMAND SIDE 1 2 Mature, demanding B2B Customers: Desire for high quality of services and hassle free End-2-End integration. The new Role of the Travel-Manager: Getting the hassle out of employee mobility. SUPPLY SIDE 3 4 New Plurality: Formerly immobile oligopolies invite new platform economy entrants and plays. Ample risk capital: Blooming experimentation and experiences experimenters! TECHNOLOGY SIDE 5 6 New, decentral technology paradigms: Multi-cloud, blockchain, Voicebots, predictive technologies... tunneling of standards from B2C into B2B. Connecting the Data Silos: Aggregation plus - Evolving from being a static data hamster to becoming an agile value-weasel. 3/28/2018 ITB BERLIN BUSINESS TRAVEL FORUM BUSINESS TRAVEL DISRUPTED KEYNOTE 5

6 Demand Side // Thesis 1: Mature, demanding Customers. DESIRE FOR HIGH QUALITY OF SERVICES & HASSLE FREE END-2-END INTEGRATION a) Embrace B2C: Prepare for self service and focus on ease of doing business. Be aware that things / processes will be more complex before they're easy. b) Integrate: From booking to settlement (e.g. SAP concur..). c) De-frustrate + Simplify support: Meaningfully bridge the gap between the many, not functioning support silos and KEEfocus on customer delight and remember: automatization creates more garbage per time! 1 Business travelers do not book anymore "via the secretariat Decrease of frustration tolerance, customer interface and process simplicity more important 3/28/2018 ITB BERLIN BUSINESS TRAVEL FORUM BUSINESS TRAVEL DISRUPTED KEYNOTE 6

7 Demand Side // Thesis 2: The new Role of the Travel-Manager. GETTING THE HASSLE OUT OF EMPLOYEE MOBILITY a) Fencing off demand does not work anymore: Become business and technology scout! b) Employee productivity is central minimize distraction c) War of Talents KEE d) Expenditures are on the rise actively shape the future! 2 Travel Management needs to reinvent itself: business partner or travel uncle? reporting to finance? purchasing? even IT? Actively prevent insignificance 3/28/2018 ITB BERLIN BUSINESS TRAVEL FORUM BUSINESS TRAVEL DISRUPTED KEYNOTE 7

8 The process of business travel: A Babylonian confusion of responsibilities. HR Human Resources Travel Mgmt. Procurement Business line / Finance Travel Mgmt. Procurement Traveller Security HR Finance HR Payroll Business line / Finance Finance HR Travel Agency TMC ERP Personal data Business Trip Planning Trip Request Approval Business Trip Journey Expenses Claim Approval Reimbursement Payment Archive Optional Online Booking Optional 3/28/2018 ITB BERLIN BUSINESS TRAVEL FORUM BUSINESS TRAVEL DISRUPTED KEYNOTE 8

9 Supply Side // Thesis 3: New Plurality. FORMERLY IMMOBILE OLIGOPOLIES INVITE NEW PLATFORM ECONOMY ENTRANTS AND PLAYS a) Gigantic and growing market. b) Data driven business models... ideal for platform-driven investors (they may not know the travel business perfectly and in detail, but how to capture markets). c) Slow Oligopolies "invite attackers": Air, distribution, pay... d) We are facing a Cambrian explosion: New players are rediscovering the topic of Travel Management (once again)! 3 Aggregation or dull "mediation" is the sure way to sink. 3/28/2018 ITB BERLIN BUSINESS TRAVEL FORUM BUSINESS TRAVEL DISRUPTED KEYNOTE 9

10 Supply Side // Thesis 4: Ample risk capital. BLOOMING EXPERIMENTATION AND EXPERIENCES EXPERIMENTERS! a) Venture Capital inflow to travel tech: > 10Mrd USD in > 1000 Deals b) Professional investor firms with track record: see list c) Business Travel made for GAFA! (AI Play!) d) It is not the Booking, stupid! 4 These investments will change the market! 3/28/2018 ITB BERLIN BUSINESS TRAVEL FORUM BUSINESS TRAVEL DISRUPTED KEYNOTE 10

11 Technology Side // Thesis 5: New, decentral technology paradigms. MULTI-CLOUD, BLOCKCHAIN, VOICE-BOTS, PREDICTIVE TECHNOLOGIES TUNNELING OF STANDARDS FROM B2C INTO B2B. a) Demography (Japan, China,!) as key driver + Millennial Workforce b) Blockchain c) Chatbot 2 robot (predictive!) d) AI (i.e. compliance assist) e) Multi-cloud-architectures f) 5 New technologies deliver opportunities on a massive scale! Consider market disruptors like: Amazon, Google, Samsung, WeChat... 3/28/2018 ITB BERLIN BUSINESS TRAVEL FORUM BUSINESS TRAVEL DISRUPTED KEYNOTE 11

12 Technology Side // Thesis 6: Connecting the Data Silos. AGGREGATION PLUS EVOLVING FROM BEING A STATIC DATA HAMSTER TO BECOMING AN AGILE VALUE-WEASEL a) Attention management: Hassle-free all in one subscription b) Gossens Law: Decreasing marginal utility of information drives Googlefication (I do not want endless information but the right piece!) c) Predictive offerings: Context aware d) Compliance: built in 6 IMPORTANT: Data is only valuable if you can offer the customer added value. This added value is increasingly being created across the silos... 3/28/2018 ITB BERLIN BUSINESS TRAVEL FORUM BUSINESS TRAVEL DISRUPTED KEYNOTE 12

13 PLANNING AHEAD

14 What now? Situation Awareness Learning Agenda Business Model Challenge Experimentation Capability Scanning of the landscape and creating a view on where you are today. Customer backwards! Where is the opportunity in and around your Business Model? Understanding an Alexa World. Where is the opportunity in and around your Business Model? Disrupting yourself. Creating your laboratory and getting stuff into the field. Having a team that can search and try out partnerships and technology /28/2018 ITB BERLIN BUSINESS TRAVEL FORUM BUSINESS TRAVEL DISRUPTED KEYNOTE 14

15 Vita: Ludger Bals, TTCG und Dr. Engelbert Wimmer, Founder & CEO e&co. AG. LUDGER BALS is an innovative business developer with +25 years experience in consulting and developing solutions for the corporate travel industry market. As Geo-scientist and with diploma in public law he is well known as cross-functional communicator. As Associate Partner for the Travel Consulting Group he is leading projects in the End-2-End market. Since 11 years he is identifying the upcoming trends in the mobility market in the Business Travel Think Tank VDR TrendsPort. DR. ENGELBERT WIMMER is an entrepreneur, pioneer and sought-after top management consultant, CEO of the management consultancy e&co. The graduate engineer has almost 20 years of consulting experience in the automotive, mobility and aviation industries. He is an expert in organizational transformation and change management and acts as start-up investor within the mobility industry, where he is also known for his mentoring role in several accelerator programs. 3/28/2018 ITB BERLIN BUSINESS TRAVEL FORUM BUSINESS TRAVEL DISRUPTED KEYNOTE 15

16 TAKE OFF INTO THE FUTURE OF BUSINESS TRAVEL. This is only the abstract of the full keynote held on the ITB. For further information and advisory, please contact Dr. Engelbert Wimmer:

17 International location overview of the e&co. AG. TALLINN WOLFSBURG BERLIN MUNICH VIENNA LINZ SEOUL e&co. AG ENABLING VALUE E: T.: This presentation is protected by copyright; all rights reserved by e&co. AG.

18